Digital transformation should mean that customers get more personalized services and products. They should be able to get it from a variety of channels. The customer’s experience across the omnichannel landscape will be how most customers develop loyalty to companies and brands. There is of course a privacy concern as companies develop a profile… so there is an exchange of benefit to the customer for a little bit of privacy being given away to the company. As long as the company is treating that data with the respect and saliency required, we will see that personalization can bring substantial meaning to what has been a relatively cold buying experience.
Serving segments of customers means an even larger focus on content. Developing alternative content for various customer segments is one of the key components of personalization and is enabled by the technology stack, usually underpinned by a CMS, CRM or both. Optimizing the content requires A/B testing, measurement and a culture of iteration and improvement.
Integration and data security are paramount. This includes integration of data sources internal to an organization such as CRM, POS, Customer Support, Social Media and Web Site data. But it also involves third party data sources for enrichment. Creating segments requires good data from both online and offline resources. Once these are federated together, you know a lot about customers and setting up proper protocols.
What is Digital Transformation?
Consumer Data a Target?
Road Blocks to Transformation?
The Term Digital Transformation is thrown around a lot. What does it mean from a customer, marketing and technology standpoint?
What are the concerns around personalization and having so much customer data in one place?
What do you think prevents companies from getting to where they need to be for digital transformation?
There are obvious consumer concerns considering the nature of digital transformation, the volume of customer data in one place and the prevalence of identity theft, password compromise and other data breaches.
We know the bigger the target, the more resources an attacker will coordinate to compromise the data. Creating a trusted environment requires respect of the data and a proper security stance. The risk of personally identifiable information (PII) exposure becomes more troubling as profiles and personalization become more complete from multiple channels across the Internet. The customer is a puzzle the company is trying to solve – most pieces are present and many are self-assembling. The problem is, this means a lot of data is available and building a profile.
Many companies can’t make the digital transformation leap they may desire.
For some, the blocking factor is technical complexity. The complexity of the marketing technology landscape can be a barrier. Marketing isn’t traditionally familiar with discussing application portfolios like IT teams might be. That level of complexity constantly fights back against an organization trying to deliver a “world-class” experience. New technology adoption is actually quite high, but integration of that data into something useful is harder resulting in manual processes continuing to be used.
Organizational design is also major challenge when undergoing a digital transformation, because many companies are still stuck in a traditional model.
Large companies especially will spend millions on tradeshows, even if those tradeshows yield very few results. Simultaneously, Digital Marketing… a channel that can be well monitored, reported upon and tweaked, is left begging for 1/10th of that budget even if the business case shows equivalent spend gets only 1/10th the value at the tradeshow. While “content is king” is continually shouted loud, there exist few content creators or curators on the large company marketing team. Publishing roles are sorely lacking and unique content creation is pushed down in priority.
A large percentage of enterprise marketing departments would do well to re-organize around digital marketing as the core, instead of it being relegated to the fringe.